34 CFR § 648.65 - How does the institution of higher education disburse and return funds?

---
identifier: "/us/cfr/t34/s648.65"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "34 CFR § 648.65 - How does the institution of higher education disburse and return funds?"
title_number: 34
title_name: "Education"
section_number: "648.65"
section_name: "How does the institution of higher education disburse and return funds?"
chapter_name: "OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION"
part_number: "648"
part_name: "GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "20 U.S.C. 1135-1135e, unless otherwise noted."
regulatory_source: "58 FR 65842, Dec. 16, 1993, unless otherwise noted."
cfr_part: "648"
---


# 648.65 How does the institution of higher education disburse and return funds?

(a) An institution that receives a grant shall disburse a stipend to a fellow in accordance with its regular payment schedule, but shall not make less than one payment per academic term.

(b) If a fellow withdraws from an institution before completion of an academic term, the institution may award the fellowship to another individual who satisfies the requirements in § 648.40.

(c) If a fellowship is vacated or discontinued for any period of time, the institution shall return a prorated portion of the institutional payment and unexpended stipend funds to the Secretary, unless the Secretary authorizes the use of those funds for a subsequent project period. The institution shall return the prorated portion of the institutional payment and unexpended stipend funds at a time and in a manner determined by the Secretary.

(d) If a fellow withdraws from an institution before the completion of the academic term for which he or she received a stipend installment, the fellow shall return a prorated portion of the stipend installment to the institution at a time and in a manner determined by the Secretary.

(Authority: 20 U.S.C. 1135c, 1135d)